The Rise of Video Games: How Grandmas Embraced the Gaming Culture - Research Paper

Introduction

Since their commercial inception in the mid-20th century as technological twists during a science fair, video games and the gaming industry has blossomed into a significant and most profitable entertainment business in the world. The growth of mobile technology has also revolutionized this sector and create opportunities for the new generation of gamers. Video games and the gaming culture has become so assimilated into the modern popular culture to the point that modern grandmas are conversant with Angry Birds. Currently, 42% of Americans are serious gamers, and four of every five US families have a console (Goldberg 5). Since its establishment, the gaming industry have undergone numerous changes, which have improved the quality of services in the sector.

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Dr. Edward Uhler Condon created the first-ever gaming machine in 1940 that got revealed at the New York World's Fair. This product resembles the actual arithmetical game, Nim. Roughly 50000 individuals interacted with the game in the half-year it was released. The computer system, however, won 90 % of the games while humans often lost (Egenfeldt-Nielsen et al. 22). The very first gaming structure intended for household use was the Brown Box created by Ralph Baer. Brown Box comprised of a vacuum tube-circuit connected to a TV set (Egenfeldt-Nielsen et al. 22). It allowed two individuals to move cubes that pursued one another on a monitor. This video gadget could get automated to run several video games such as Ping Pong, four sports, and checkers. The application of advanced technology into gaming saw the creation of the additional accessories such as the light gun used in gunfire games and a unique accessory meant for golf games.

The early 1970s marked the revolution of the gaming industry. In August 1972, Ralph Baer and Magnavox Odyssey created the Odyssey, a product people referred to as the mystery box. The Odyssey sold roughly 100000 units at the end of 1972. This accomplishment may have been the turning point and beginning of the gaming industry (Egenfeldt-Nielsen et al. 7). On 24th May 1972. Nolan Bushnell, Atari's co-founder, visited a Magnavox product fair and played Odyssey and the Ping pong game. After that, Nolan hired an engineer to design a coin-operated arcade game. PONG was created at the end of 1972 (Egenfeldt-Nielsen et al. 7). PONG received significant attention, which forced Atari and other participants to work on creating newer versions of the game. Three months later, the market was flooded with PONG clones. Atari never filed a patent on their property; hence they could not sue their competitors. Magnavox then sued Atari for infringing on Baer's concepts and patents. Atari and Magnavox settled the issue outside court, with Atari agreeing to be a Magnavox Licensee for $0.7 million (Chad 8). It meant that Atari could distribute pong while other Atari clones would have to pay royalties to Magnavox to do the same.

This lawsuit forced PONG and the clone companies to produce gaming outlets in arcades, bars, and households. Atari and other firms generated more home, and coin-operated consoles and the public purchased them slowly. By 1977, the video concept became monotonous and lacked creativity (Egenfeldt-Nielsen et al. 7). Many PONG clones had been manufactured and were flooding in the market. Many forms had to clear their stocks at a loss. Despite the growth of the industry in the 1980s, many mediocre quality games existed in the market. The majority were produced by Atari's, and Magnavox's third parties for household consoles. The hardware producers couldn't control the parties making their games. Therefore, most of the games were unattractive because they were introduced to the market while underdeveloped. This poor quality caused both retailers and consumers to lose confidence in the industry's quality (Chad 10). The gaming business crashed in 1983 due to the competition from home computers and inflation. This crash saw the industry revenue drop by 97%, and many firms folded or went bankrupt (Chad 10). The action had grave effects on the gaming industry.

Toshihiro Nishikao released the Space Invaders in 1978, which triggered a revival in the gaming industry. The game generated a $2billion revenue by 1982 (Chad 12). Many restaurants, malls, and stores stocked the Space invaders arcade machines in their premises. During this era, the two main markets for gaming accessories were the arcade market and the household market. In 1982, the arcade market hit the climax, generating $8 billion, an amount that was more than what Hollywood films and pop music combined created (Chad 17). Atari, who were preparing to launch their highly-hyped game, the ET, had manufactured the game in millions of units based on their projected sales. A report claims that "eleven semi-trailer truckloads of Atari cartridges, assorted parts and computers' got dumped in a landfill located in New Mexico several months after the ET's launch (Chad 12). The firm only sold 1.5 million units, compared to the five million units they had produced. It reduced the productivity of the sector.

In the 1980s, retailers had already given up on the video game industry. Consequently, they did not purchase video games anymore. Developers found it challenging to get their products on the shelves. Nintendo changed this perception in 1981 with the launch of Donkey Kong. This game flourished and boosted Nintendo's popularity and profits (Egenfeldt-Nielsen 16). Nintendo later produced the Family computer in 1983 and introduced it to the USA in 1985. The firm avoided referring to the product like a video game system and instead called it an entertainment system to prevent the stereotype and negative perception attached to video gaming during that period. The firm was also aware of the hardware errors that had caused the loss of popularity of video games in the previous decade. To prevent a similar occurrence, the firm incorporated an authentication system in the system that recognized authentic games in a bid to avoid clones (Egenfeldt-Nielsen 15). This approach prevented the production of counterfeit cartridges and also ensured quality in video game production. Nintendo also allowed third party manufacturing to overcome competition from Sega although with strict terms. Third parties could only produce five releases annually and had to pay before their production. Several firms such as Sega, Sony, and Microsoft later implemented their platform control strategies. In 1989, Nintendo sold seven million game consoles (Egenfeldt-Nielsen 15). It was a figure that the home computer achieved in five years.

The nineties saw the return of video game popularity. Video gaming relies on electronic gadgets and computers; hence the increase in technical complexity, the more advanced games become. The 90s marked a period of graphic and computing technology advancements that had a significant impact on the industry. CPU speed, memory, and small-sized circuit-centered hardware facilitated the creation of high performing computers that accumulated smaller spaces compared to previous gadgets (Egenfeldt-Nielsen et al. 7). This technology advancement enabled the creation of hand-grasped devices such as the Gameboy and more reliable and effective home consoles. CPU and GPU (graphic processing unit) facilitated the development of 3D graphics and GUI (Graphical user interface) centered programs and systems (Goldberg 12). The 3D environments helped developers in expressing a variety of worlds and ideas for gamers to explore. The concept also enabled the development of new video game genres that employ a similar concept today. Such include racing games, first-person shooters, 3D platformers, role-playing games (RPG), and fighting games. Pokemon Red or Blue, the highest seller of the 90s, was an RPG game that used 2-D graphics. The increased popularity of Pokemon triggered the introduction of Pokemon trading cards, TV shows, books, movies, and toys. It indicated video game popularity in the US (Goldberg 12). CD-ROM technology also revolutionized the industry. CD-ROMs were much cheaper than cartridges and had a higher storage capacity. This technology made many developers shift from Nintendo cartridges to Sony's play station because of the less risk and low developing costs associated with CD-ROMS.

The internet and digital distribution fueled the gaming industry in the 21st century. The internet consolidated gamers and allowed them to play against and with each other, a concept that changed the console and game development landscape. The increase in digital distribution allowed independent and smaller developers to create numerous game versions without the risk of costs associated with producing physical game versions. This approach triggered the creation of more unique and niche video games because developers had the freedom to appeal to a broader audience. On the distributer's side, digital distribution enables enabled modding (Goldberg 10). Modding allows the upgrade or fixing a bug in video games that alters the current game and creates a new game version altogether. Counter-strike, a significant play that applies modding, garnered 25 million copies in 2011 ((Goldberg 10). The game utilized a modification from an entirely different game, Half-Life.

As PCs took over the internet and digital distribution, consoles took more extended periods to adapt, Consoles such as the Nintendo GameCube of 2001, Microsoft Xbox (2001) Sony PlayStation 2 (2000) and Sega Dreamcast (1998) offered online gaming through the internet (Goldberg, 13). The experience was, however, not perfect. Providing online support and submitting online multiple player platforms proved hard for Dreamcast and Nintendo. Nevertheless, Microsoft and Sony produced various games, offered online support, and enabled numerous player platforms, which made them more relevant. In 2002, Microsoft produced the Xbox Live, an online gaming platform that enabled users to have a single identity and account and also voice chat. This move gave Microsoft an upper hand over the rest in the gaming industry. Technological advancements and internet facilitated significant changes and progress in the gaming industry.

At present, the gaming industry is as volatile as it was in the past. Firms emerge and disappear, and only those that produce excellent quality and generate popularity survive in the industry. Another critical aspect of surviving in the industry was massive funding. The AAA approach helps govern the standards for game development. It revolves around the concept; big-budgets give big sales. Based on recent developer successes, the idea works. Franchises such as Call of Duty, Assassin's Creed, Grand Theft Auto, and World of Warcraft are proof of the efficiency of the system (Chad 15). This condition implies that firms have to invest big to reap big.

For instance, Take-Two Interactive spent $ 260 million and five years to produce Grand Theft Auto and only one day to make a revenue of $ 1 billion. However, a large portion of the budget goes towards advertising. It keeps potential reviewers and viewers talking about the product before it gets released (Egenfeldt-Nielsen et al. 8). Advertising, however, depends on how many access the game and not the number of individuals that like the game. This move is, therefore, a significant risk because the audience often influences one another on social media and other platforms. A poor quality release would mean a loss of considerable revenue and reputation, which affects future sales.

Modern technology has seen the creation of new platforms and new approaches to interactive entertainment. Mobile devices (both Android and iPhone) have been a significant boost to the industry. They have turned individuals that don't fancy games into gamers. Approximately 40% of US citizens have games on thei...